Endowments provide stability to scholarship programs because the principal gift is retained to produce income on an annual basis, in perpetuity, while a portion of the annual investment return is used for a scholarship award. The rest of the investment yield is returned to the principal and, over time, the fund grows.
Endowment gifts may be restricted to a college or program to reflect an interest in a specific area or they may be given to a general University of Houston scholarship fund to support the widest array of students.
A minimum gift of $25,000 is required to establish an endowment for a partial scholarship. Donors wishing to give a full scholarship will establish endowments of $160,000 or more. It is acceptable to establish an endowment and fund it over a period of time or to fund it all at once.